The U.S. economy grew by an annualized 2.3 percent in the first quarter, according to preliminary data. This was slightly better than the consensus estimate of around 2 percent, even as real GDP eased from 2.9 percent growth in the fourth quarter data.

According to the latest revision from the Bureau of Economic Analysis, the U.S. economy grew 2.9 percent at the annual rate in the fourth quarter of 2017, up from the previous estimate of 2.5 percent and better than the consensus estimate of around 2.7 percent.

Manufacturing production has risen 2.5 percent over the past 12 months, up from 1.6 percent last month and the best year-over-year rate since July 2014. Similarly, manufacturing capacity utilization jumped from 76.0 percent in January to 76.9 percent in February, a reading not seen since April 2008.

There were more encouraging signs for manufacturers last week in the economic data. For instance, the Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers’ Index rose to 60.8 in February, the highest level since May 2004.

Financial market volatility has picked up notably in the past few weeks, with equity and bond markets adjusting to stronger economic growth and increased inflationary expectations and to the impacts that this will have on future monetary policy.